Understanding Factors of Change in Business Environments
Factors of change in business environments encompass socio-cultural, economic, technological, political, and legal elements. These factors influence how businesses operate and make decisions in a dynamic world. The social environment, cultural environment, and economic environment play crucial roles in shaping consumer behavior and market dynamics. Businesses must adapt to these various environments to thrive and seize opportunities while mitigating constraints.
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Presentation Transcript
FACTORS OF CHANGE: 1.Socio-cultural- Social habits, Cultural differences. 2.Economical- Resources, Capital markets etc 3.Technological- Communication, Innovation. 4.Political Factors- Power , Dominance.. 5.Legal- Various laws and legislative acts.
Social Environment Social environment of business means all factors which affects business socially. Every business works in a society. So societies different factors like family, educational institutions and religion affects business. It includes the culture that the individual was educated or lives in, and the people with whom they interact.
Cultural Environment The cultural environment means an environment which affect the basic values , behaviours and preferences of the society-all of which have an effect on consumer marketing decisions. Socio-cultural Environment Aset of beliefs, customs, practices and behaviour that exist within a population. International companies often environment prior to entering their target markets. include an examination of the socio- cultural
Economic Environment The definition of economic environment is the environment in which businesses operate that is dependent on the sum total of economic factors. Economic factors include income, employment, inflation, interest rates, consumer behaviour and distribution of wealth. All of the economic factors have effects on the economic environment, which in turn affects the business market.
Economic Environment The Economic Environment factors have immediate and direct impact on the businessman so businessmen must scan the economic environment and take timely actions to deal with these environments. Economic environment may put constraints and may offer opportunities to the businessman. After the new economic policy of 1991,lot of opportunities are offered to businessmen.
